The Tax Publishers2019 TaxPub(DT) 1266 (Pune-Trib)

INCOME TAX ACT, 1961

Sections 271(1)(c) & 274

AO is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty.

Penalty under section 271(1)(c) - Justification - Non-specification of charge -

In assessment under section 115WE(3), the AO made certain additions and invoking the provisions of section 271(1)(d), levied penalty. Held: At the time of initiation of penalty proceedings in the assessment, AO had not mentioned any limb. However, at the time of levy of penalty, he mentioned that 'this is a fit case for levy of penalty in terms of Explanation 1 to section 271(1)(d), for filing of inaccurate particulars. This manner of recording of satisfaction suggests the existence of ambiguity with reference to applicability of specific limb. The order levying penalty was, therefore, set aside on this technical ground.

Relied:CIT-11 v. Samson Perinchery (2017) 392 ITR 4 (Bom) : 2017 TaxPub(DT) 672 (Bom-HC), CIT & Ors. v. Manjunatha Cotton and Ginning Factory (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC) and V.S. Lad & Sons, (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08



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